Pound Sterling weakens 0.1% against USD after Bank of England’s mixed signals despite a hawkish vote split.
The British pound (GBP) fell 0.1% to around 1.3420 against the US dollar (USD) in European trading on Tuesday, extending losses as the Bank of England’s (BoE) policy signals offered little support. A downward-sloping trendline near 1.3470 remains a key resistance level, capping upside momentum.
Analysts noted that while the BoE’s Monetary Policy Committee (MPC) delivered a more hawkish voting split than expected, Governor Andrew Bailey’s dovish tone in his press conference undermined confidence. Rabobank highlighted that GBP net shorts increased last week, reflecting renewed speculative pressure despite the firmer policy stance.
Sterling was the weakest major currency against the Australian dollar, with broader weakness evident across currency pairs. The lack of clear policy backing from the BoE leaves the pound vulnerable to further downside.